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Investments are usually taxed at long term capital gains rates and only when you realize them. So someone with 500k income can be putting away 250k a year into
by ummonk 7y ago
Investments are usually taxed at long term capital gains rates and only when you realize them.
So someone with 500k income can be putting away 250k a year into investments, while someone with a 10 million dollar portfolio can be having 700k in gains each year, only getting taxed when they sell something.
- vonmoltke 7y agoThat was my point. You are assuming the wealth appreciation is mostly asset value appreciation that is not realized as a gain every year. Otherwise, this household would also be in the top 1% of incomes, and this thread started by talking about the distinction between top 1% incomes and top 1% wealth.